PMI Cuts Jobs At Walnut Creek Headquarters

Update: 12 noon Jan. 13: With comments from PMI vice president.

PMI Mortgage Insurance, whose 2011 wound down with disastrous news about the economic future of the company, has started the new year with layoffs.

PMI, which was one of the largest employers in Walnut Creek, declined to state the number of positions lost, but the Contra Costa Times reported the number was 155, based on a document filed with the state labor authorities.

"Essentially," wrote Bill Horning, PMI vice president, in an email to Patch, "all employees remaining are located in Walnut Creek."

after the Arizona Department of Insurance, citing inadequate company funds to back up policies, took control of PMI.

"PMI is no longer writing new mortgage insurance in any state," said Horning. "Therefore, the sales force and marketing positions were among those eliminated in the reduction in force ... the Walnut Creek office continues to operate to service existing insurance policies, work on delinquent loans, and pay claims when due."

The most recent report on the company's website records a loss of $134.8 million — 83 cents a share — in the second quarter of 2011. The company's bottom line suffered from the widespread rise in foreclosures.

In November, the PMI Group announced it had filed a voluntary petition for relief in U.S. Bankruptcy Court. The company said in a press release that, at the time of the takeover by Arizona insurance authorities, PMI was in the process of negotiations to raise capital from investors to be able to write new policies through a subsidiary.

PMI executives told the Contra Costa Times they would offer severance benefits and outplacement services for laid-off workers. PMI is on Oak Road near the Pleasant Hill BART station.